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US Air Force awards Houston geothermal co. $1.9M grant project

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Houston startup Sage Geosystems has announced a new $1.9 million deal with the Air Force. Photo via sagegeosystems.com

The Department of the Air Force awarded Houston geothermal company Sage Geosystems Inc. a grant of $1.9 million in a first-of-its kind contract to determine whether a power plant using Geopressured Geothermal Systems is able to generate clean energy “needed for a base to achieve energy resilience,” according to a news release. The Sage facility will be the first GGS facility in the world to generate electricity, and the system will be constructed at an off-site test well in Starr County, Texas.

”We are excited to partner with the U.S. Air Force on this geothermal demonstration project,” CEO of Sage Geosystems Cindy Taff says in a news release. “Next generation geothermal technologies, like Sage Geosystems’ GGS, will be critical in providing energy resiliency at U.S. military installations.”

In addition to the grant, the company will match the grant with an additional $1.9 million for the demonstration project. The collaboration with Sage is one of three geothermal pilot projects the DAF has initiated in regards to next-generation geothermal technologies in 2024.

“We feel this is the launch pad of helping not only the DoD but many other applications throughout global markets,” 147th Civil Engineer Squadron Commander Lt Col Christian Campbell says in the release.

According to the DAF, the possibility of a full-scale project at Ellington Field Joint Air Reserve Base in Houston could usher in a new era of clean power producing plants to help meet the requirements for bases.

“This initial contract is a step forward in the Air Force’s push for energy resilience,” Kirk Phillips, director of the Air Force Office of Energy Assurance, adds in the release. “This project will improve Ellington Field’s ability to maintain operations during electrical grid outages and be completely self-sufficient for their energy needs.”

The GGS process works by repurposing fracking technology to extract thermal energy from below the Earth’s surface.GGS also demonstrates the opportunity for the civilian sector by surpassing the intermittency challenges for solar and wind energy generation. GSS can also work towards minimizing land use, which enables the technology to be used in urban areas without relying on transmission line build outs that can be expensive.

“This project, and the future Department of the Air Force projects that it paves the way for, will help to assure that our national security needs are met by our installations during critical emergencies,” Phillips continues.

The six finalists for the sustainability category for the 2023 Houston Innovation Awards weigh in on their challenges overcome. Photos courtesy

4 biggest challenges of Houston-based sustainability startups

Houston innovation awards

Six Houston-area sustainability startups have been named finalists in the 2023 Houston Innovation Awards, but they didn't achieve this recognition — as well as see success for their businesses — without any obstacles.

The finalists were asked what their biggest challenges have been. From funding to market adoption, the sustainability companies have had to overcome major obstacles to continue to develop their businesses.

The awards program — hosted by EnergyCapital's sister site, InnovationMap, and Houston Exponential — will name its winners on November 8 at the Houston Innovation Awards. The program was established to honor the best and brightest companies and individuals from the city's innovation community. Eighteen energy startups were named as finalists across all categories, but the following responses come from the finalists in the sustainability category specifically.

    Click here to secure your tickets to see who wins.

    1. Securing a commercial pilot

    "As an early-stage clean energy developer, we struggled to convince key suppliers to work on our commercial pilot project. Suppliers were skeptical of our unproven technology and, given limited inventory from COVID, preferred to prioritize larger clients. We overcame this challenge by bringing on our top suppliers as strategic investors. With a long-term equity stake in Fervo, leading oilfield services companies were willing to provide Fervo with needed drilling rigs, frack crews, pumps, and other equipment." — Tim Latimer, founder and CEO of Fervo Energy

    2. Finding funding

    "Securing funding in Houston as a solo cleantech startup founder and an immigrant with no network. Overcome that by adopting a milestone-based fundraising approach and establishing credibility through accelerator/incubator programs." — Anas Al Kassas, CEO and founder of INOVUES

    "The biggest challenge has been finding funding. Most investors are looking towards software development companies as the capital costs are low in case of a risk. Geothermal costs are high, but it is physical technology that needs to be implemented to safety transition the energy grid to reliable, green power." — Cindy Taff, CEO of Sage Geosystems

    3. Market adoption

    "Market adoption by convincing partners and government about WHP as a solution, which is resource-intensive. Making strides by finding the correct contacts to educate." — Janice Tran, CEO and co-founder of Kanin Energy

    "We are creating a brand new financial instrument at the intersection of carbon markets and power markets, both of which are complicated and esoteric. Our biggest challenge has been the cold-start problem associated with launching a new product that has effectively no adoption. We tackled this problem by leading the Energy Storage Solutions Consortium (a group of corporates and battery developers looking for sustainability solutions in the power space), which has opened up access to customers on both sides of our marketplace. We have also leveraged our deep networks within corporate power procurement and energy storage development to talk to key decision-makers at innovative companies with aggressive climate goals to become early adopters of our products and services." — Emma Konet, CTO and co-founder of Tierra Climate

    4. Long scale timelines

    "Scaling and commercializing industrial technologies takes time. We realized this early on and designed the eXERO technology to be scalable from the onset. We developed the technology at the nexus of traditional electrolysis and conventional gas processing, taking the best of both worlds while avoiding their main pitfalls." — Claus Nussgruber, CEO of Utility Global

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    ExxonMobil postpones $10B plastics manufacturing plant

    plastics project postponed

    Spring-based ExxonMobil is postponing development of a $10 billion plastics manufacturing plant along the Gulf Coast. Construction on the plant, to be located near Port Lavaca, was supposed to begin next year.

    “Based on current market conditions, we are going to slow the pace of our development for the Coastal Plain Venture,” ExxonMobil confirmed in an emailed statement. “We’re confident in our growth strategy, and we remain interested in a potential project along the U.S. Gulf Coast and in other regions around the world. We’re maintaining good relationships with community leaders and contractors, so we are ready to reevaluate the project’s status when market conditions improve.”

    According to Independent Commodity Intelligence Services, the Coastal Plain project was preliminary, and ExxonMobil had not yet announced its decision about building a plant for polyethylene production. Polyethylene, the world’s most common plastic, is used in a variety of products, such as bags, bottles, food containers, automotive components, medical tubes, IV bags, children’s toys and cutting boards.

    The Coastal Plain postponement follows a judge’s ruling in August that invalidated a decision by Calhoun County ISD board members to negotiate tax breaks with ExxonMobil, according to Inside Climate News. The judge made the ruling in a case filed by environmental activist Diane Wilson and her nonprofit group, San Antonio Bay Estuarine Waterkeeper.

    Wilson told Inside Climate News that she thought public opposition played a part in ExxonMobil postponing the Coastal Plain project.

    “I think if everybody had just rolled over for them, if they got exactly what they wanted (tax breaks) and there wasn’t a big fight, there would be no delay,” Wilson said.

    KBR shifts sustainability focus with planned spinoff

    seeing green

    Houston-based KBR, a provider of technology and engineering services for government and private-sector customers, is pursuing a tax-free spinoff of its Mission Technology Solutions business as a public company. Following the spinoff, KBR would remain a public company.

    The new company, nicknamed SpinCo, would focus on technology and engineering services for the space and national security sectors. The scaled-down KBR, nicknamed RemainCo, would concentrate solely on sustainability technology and services designed to reduce carbon emissions and support energy transition efforts.

    According to the company, RemainCo, or New KBR, will is positioned to serve the ammonia and syngas, chemical and petrochemicals, clean refining, and circular economy markets.

    Stuart Bradie, chairman, president and CEO of KBR, said that from July 2024 to July 2025, the Mission Technology Solutions segment generated revenue of $5.8 billion. During the same period, the Sustainability Technology Solutions segment posted revenue of $3.7 billion.

    KBR has forecast fiscal year 2025 revenue of $8.1 billion, up from $7.7 billion during the previous fiscal year. The company’s 2026 fiscal year starts in January.

    In a news release, KBR said SpinCo and the restructured KBR would “deliver long-term profitable growth and value for customers, associates, and shareholders.”

    “Our team has successfully built two leading businesses with the necessary scale and strong financial profile to enable us to take this next exciting step,” Bradie told Wall Street analysts.

    Over the past decade, Bradie said, KBR has evolved into “a leading provider of differentiated, innovative, up-market science, technology, and engineering solutions with global scale, global reach, and global impact.” The spinoff would create two public companies that’ll “unlock the next phase of value creation,” he added.

    Bradie will be chairman, president, and CEO of the newly configured KBR, while Mark Sopp, KBR’s executive vice president and chief financial officer, will transition to oversight of the Mission Technology Solutions spinoff. Effective Jan. 5, Shad Evans will succeed Sopp as CFO of KBR. He currently is KBR’s senior vice president of financial operations.

    Bradie said an executive search firm has been hired to identify candidates for the CEO and CFO roles at SpinCo.

    The spinoff is expected to be completed in mid- to late 2026.

    Houston energy startups, leaders named finalists for 2025 Innovation Awards

    Meet the Innovators

    InnovationMap.com, EnergyCaptialHTX's sister website, has revealed the finalists for the 2025 Houston Innovation Awards, and the local energy sector — from startups to leaders and accelerators — is well-represented throughout the awards.

    Taking place on November 13 at Greentown Labs, the fifth annual Houston Innovation Awards will honor the best of Houston's innovation ecosystem, including startups, entrepreneurs, mentors, and more.

    This year's finalists were determined by our esteemed panel of judges, comprised of past award winners and InnovationMap editorial leadership.

    The panel reviewed nominee applications across 10 prestigious categories to determine the finalists. They will select the winner for each category, except for Startup of the Year, which will be chosen by the public via online voting launching later this month.

    The Trailblazer Award recipient will be announced in the coming weeks, and the rest of this year's winners will be unveiled live at the annual awards ceremony and event on November 13 at Greentown Labs.

    Tickets are on sale now — including a limited number of corporate 10-packs — secure yours today.

    Without further ado, here are the 2025 Houston Innovation Awards finalists:

    Minority-founded Business

    Honoring an innovative startup founded or co-founded by BIPOC or LGBTQ+ representation:

    • Capwell Services
    • Deep Anchor Solutions
    • Mars Materials
    • Torres Orbital Mining (TOM)
    • Wellysis USA

    Female-founded Business

    Honoring an innovative startup founded or co-founded by a woman:

    • Anning Corporation
    • Bairitone Health
    • Brain Haven
    • FlowCare
    • March Biosciences
    • TrialClinIQ

    Energy Transition Business

    Honoring an innovative startup providing a solution within renewables, climatetech, clean energy, alternative materials, circular economy and beyond:

    • Anning Corporation
    • Capwell Services
    • Deep Anchor Solutions
    • Eclipse Energy
    • Loop Bioproducts
    • Mars Materials
    • Solidec

    Health Tech Business

    Honoring an innovative startup within the health and medical technology sectors:

    • Bairitone Health
    • Corveus Medical
    • FibroBiologics
    • Koda Health
    • NanoEar
    • Wellysis USA

    Deep Tech Business

    Honoring an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors:

    • ARIX Technologies
    • Little Place Labs
    • Newfound Materials
    • Paladin Drones
    • Persona AI
    • Tempest Droneworx

    Startup of the Year (People's Choice)

    Honoring a startup celebrating a recent milestone or success. The winner will be selected by the community via an online voting experience:

    • Eclipse Energy
    • FlowCare
    • MyoStep
    • Persona AI
    • Rheom Materials
    • Solidec

    Scaleup of the Year

    Honoring an innovative later-stage startup that's recently reached a significant milestone in company growth:

    • Coya Therapeutics
    • Fervo Energy
    • Koda Health
    • Mati Carbon
    • Molecule
    • Utility Global

    Incubator/Accelerator of the Year

    Honoring a local incubator or accelerator that is championing and fueling the growth of Houston startups:

    • Activate
    • Energy Tech Nexus
    • Greentown Labs
    • Healthtech Accelerator (TMCi)
    • Impact Hub Houston

    Mentor of the Year

    Honoring an individual who dedicates their time and expertise to guide and support budding entrepreneurs. Presented by Houston Community College:

    • Anil Shetty, Inform AI
    • Jason Ethier, EnergyTech Nexus
    • Jeremy Pitts, Activate
    • Joe Alapat, Liongard
    • Neal Dikeman, Energy Transition Ventures
    • Nisha Desai, Intention

    Trailblazer Recipient

    • To be announced
    ---------

    The Houston Innovation Awards program is sponsored by Houston Community College, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

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